There's nothing illegal about the software itself, because in theory, the software can be used for legal purposes. It's the servers themselves that are problematic. Megaupload was shut down because 98% of their content was copyrighted materials which they directly profited from.
I'm close to the issue, as I'm someone who is directly effected by piracy. A good chunk of my income comes from residuals as well as percentage of DVD/Blu sales. Hollywood has responded to piracy by making less movies, taking less risks, and cutting tons of costs. This has led to me and most of the people I know having significantly less work.
Content isn't free, stealing it hurts people.
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